Thailand Law Firm Urges Compliance Review Ahead of Proposed Wage Rise

Political parties are promising to increase minimum wages ahead of Thailand's July 3 election. Business groups have warned an immediate wage increase would be a heavy burden for the private sector resulting in decreased competitiveness and increasing cost of living pressures.

(1888PressRelease) May 25, 2011 - Bangkok, Thailand - Thai law company BSA Law has encouraged employers to review their compliance with Thai labour law in the lead-up to the proposed wage increase.

Corporate legal service BSA Law has urged employers to review their compliance with Thai labour law amid political promises of increased wages ahead of the nation's July 3 election.

An experienced law firm in Thailand, BSA Law has worked closely with the business sector to ensure it meets its responsibilities under the Thai Labour Protection Act of 1998. It has also helped expatriates meet Thailand work permit conditions.

Political party Pheu Thai has promised an 80-baht increase in the daily minimum wage while the Democrats push for a minimum wage of 300 baht a day within two years.

The commerce sector has warned a 50 baht daily increase for five million workers would cost business 90 billion baht and could push up the cost of consumables, in effect reducing standards of living.

BSA Law supports measures to improve conditions for workers and believes the minimum wage debate highlights the need for employers, workers or anyone considering starting a business in Thailand to review Thai labor law. The key legislation to consider is the Thai Labor Protection Act of 1998, which establishes the minimum rights for employees including work hours, holiday, overtime, sick leave, maternity leave and severance entitlements. Key points which are often overlooked include that:

• The responsibilities of an employer apply to anyone identified as an 'employer' under Thai law;
• Additionally, Thai labor law provisions can require contractors and sub-contractors to share liabilities with an employer;
• Overtime must be agreed to by an employee and paid accordingly - some workers with supervisory authority are exempt from being paid overtime but this Thai labour law is often misinterpreted as referring to any 'skilled' or 'white-collar' workers.

BSA Law spokesman Apisakde Kongkangwanchoke said the broad interpretation of the term 'employer' under Thailand law was unique and often misunderstood.

"Any person or business which has significant involvement with the management or operation of a business, or who is engaged as a primary or sub-contractor, should check its potential liabilities as an "employer" under the act. If so, it should try to assure that the actual employer is in compliance with the act and should try to obtain indemnification from the actual employer protecting it from liability under the act."

About BSA Law:

For nearly 30 years, Bamrung Suvicha Apisakdi Law Associates (BSA Law) has focused on providing reliable legal advice and services to the Thai and foreign business community in Thailand. BSA Law seeks to provide international standards of legal services while retaining the customs of the Thai business culture.